How can I find the lowest life insurance premium?
Policy type and coverage amount are two of several factors that determine the premium for a life insurance policy. Consumers should do some comparison-shopping to find the best coverage for their money. Many people are required to purchase a life insurance policy when they take out a mortgage.
Though purchasing a policy to cover the mortgage balance in event of death is a good idea, the mortgage lender may not provide the most comprehensive or least expensive policy. Some people do not realize this and end up paying more than they should because they did not compare quotes before buying coverage.
The older you are, the higher your life insurance premium is and the difference can be substantial. An individual age 60 may pay up to ten times more for coverage than a person in the early 20s. One exception to premiums increasing with age is an over 50s plan, which pools premiums and does not require a medical examination.
Women tend to live longer so when all other aspects of coverage are equal, premiums are usually lower for women.
A person who suffers from a serious illness or who is in the initial three years of recovering from one will probably pay a higher premium for life insurance. A whole of life policy that does not require a medical examination may be one exception. However, consumers should read whole of life policy terms and conditions because premiums may drastically increase in later years.
A joint life insurance policy may sometimes have a lower premium. However, it may not be much more expensive to purchase two individual policies. In addition, having two individual policies will result in a pay out when each insured dies, resulting in double protection. Compare policies and quotes for each option to find the best coverage for the money.